Total Cost Assessment Methodology

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Total Cost Assessment was developed in 1991 by the Tellus Institute for the EPA and New Jersey Department of Environmental Protection. It is based on methods and programs developed by GE to better select and justify waste management investment decisions that are environmentally sound and reduce long-term liabilities. A sequence of studies provided the theoretical background for Total Cost Assessment. Later, the AIChE developed a full methodology around the TCA concept. The AIChE methodology is described here.

Total Cost Assessment is the consideration of all environmental and health (E&H) costs associated with a decision, including direct costs, risks and liabilities, and costs borne by others. The TCA methodology prompts the user to consider all these costs, but the user may also select a subset of costs to consider.